So everyones thoughts are simply, lets just assume that no-one finds out that AM is a real company and taxes them. Good luck to the Chinese employees when the authorities do find out! (Afterall China is such an easy place on people who break laws?)
The simple fact is that AM is a business (which by law must be registered) and it is making and selling stuff (millions of USD equivalent per month). It happens to sell this stuff denominated in something other than Renminbi, but which has a clearly calculable value in Renminbi. This is no different to mining gold or oil which is denominated in USD.
The ignorance on here is staggering. I agree it's not a problem for investors, who just care about dividends, but it will matter if the staff get jailed or the company closed because it chose to ignore local laws.
You cannot simply make something, sell it and ignore the law without consequences at some point. This same point applies to almost all Bitcoin securities. Most of these securities pass-through entire income per share, without deducting income tax on the profits (if it is a share income can only be paid from post-tax) or by withholding tax (if it is debt payments made outside the country of domicile). Of course all this may be occuring in zero-tax environments, but I highly doubt it.
They've only been around a few months, so will probably be able to get this sorted if they do it NOW, but if they don't if I was them I'd be very very scared right now about a knock on the door from the authorities.
Western thoughts isn't the same in China. For Friedcat he selling his devices by receiving BTC.. First of all ,Chinese government isn't recognized BTC as a money..Thus logically, they are trading stuffs with stuffs, no law in China indicated people trading stuff with stuff need to registered with the government.The simple fact is that AM is a business (which by law must be registered) and it is making and selling stuff (millions of USD equivalent per month). It happens to sell this stuff denominated in something other than Renminbi, but which has a clearly calculable value in Renminbi. This is no different to mining gold or oil which is denominated in USD.
The ignorance on here is staggering. I agree it's not a problem for investors, who just care about dividends, but it will matter if the staff get jailed or the company closed because it chose to ignore local laws.
You cannot simply make something, sell it and ignore the law without consequences at some point. This same point applies to almost all Bitcoin securities. Most of these securities pass-through entire income per share, without deducting income tax on the profits (if it is a share income can only be paid from post-tax) or by withholding tax (if it is debt payments made outside the country of domicile). Of course all this may be occuring in zero-tax environments, but I highly doubt it.
They've only been around a few months, so will probably be able to get this sorted if they do it NOW, but if they don't if I was them I'd be very very scared right now about a knock on the door from the authorities.
Just like you and me , we are friend, you gives me a computer ,as I appreciate what you did ,I give you back a BTC...Do we need to registered our gift transaction to the government
Are you insane Does he pay for his rent and electricity in bitcoins too, you think?
Such great thinkers around here.
(And yes, you DO need to report gifts larger than a certain size or exceeding a quota.)
Of course He can't pay BTC as his rent or electricity, Just BTC isn't money In China...... and anyway, FC is not eligible to pay directly tax either ,because only tax appear here is the manufacture who produce it and sold out by receiving fiats..(Most likely FC has outsource all his products to them)..
